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Is Honesty the Best Policy! 



Pexaltv fou Discovering Fraud. — §102,000 Gai>jed by the Govekn- 
MFNT. — Secretary Fish Removes a Co>'sul for Declinixg to 
Allow Spanish Merchants to Defraud our Revenue. 
— Services in Peace and War Rewarded by 
Dismissal, — Which is Pest, Honesty or 
Dishonesty while in the Service 
of thb Govern:ment ? — An In- 
teresting Nar*rativi:. — 
Ol'k Matchless 
Civil Ser- 
vice. 






I 






4 






Hon. JOB E. STEVENSON, 

United States House of Representatioes^ Washington. 

Dear Sir : Referring to our conversation, at Washington, I beg to submit a 
statement of what transpired during my residence at Cadiz, Spain, as the Consul 
of the United States. 

On tlie 10th August, 1865, Mr. Seward appointed me Consul at Cadiz, Spain. 
At the time I was assistant-editor of the Cincinnati Cntholk Telegraph, a journal 
well known throughout Ohio. I took charge of tiie Cadiz Consulate Jan. 
1, 1866, relieving a Cadiz ship-chandler and wine merchant, who had been 
appointed Vice-Consul, by the Department of State, after the dismissal of the 
Consul in April, 1865, for an alleged offence unparalleled in the history, I believe, 
of the consular service. 

The attention of the Departments of State and Treasury having been called, 
by the Collectors of Customs of our principal ports, in the year 1865, to the negli- 
gence and gross inattention of many of our consular officers in the matter of 
certifying invoice-, the Secretary of State, on the 20th April, 1866, issued Circular 
No. 59, which, after calling attention to the law of March 8, 1863, stated : " The 
powers conferred upon you (consular officers) for the purpose of securing truthful- 
ness and correctness in invoices are ample, and you [consular officers] shall be 
held responsible for any want of truth or correctness in any invoice certified by 
you" [consular officers]. 

Prior to the receipt of this circular, I noticed the low (invoice) price of the 
sherry sent to the United States. I made numerous enquiries about the matter. 
The wine merchant whom I found discharging the duties of Consul on my arrival 
was one of the principal shippers of this low-priced wine, and, strange as it may 
seem, when questioned, he gave me deceptive information on the subject. 

In June, 1866, :Mr. W. B. Farwell, U. S. Secret Revenue Agent, arrived at 
Cadiz. After an interchange of views on invoices, etc., he visited some of the 
■wine-cellars incog. Suffice to say, he discovered sufficient to corroborate my 
doubts. 

On the 29th June, 1863, I addressed the following letter to the Department_;of 
State : 

No. 38.] "United States Consulate, Cadiz, 

''June 29, 186G. 

" Sir : I have given notice to the owners and shippers of wine from this city and 
vicinity that they must comply with the orders of Circular No. 59, April 20, 
1866. With few exceptions they are displeased, and have given me consider- 
able trouble. A chronic system has been in practice here which allowed every 
truthless shipper to put his wines at any price he pleased. Many of them have 
grown rich and proud at the expense of our revenue, and they deem it a hard- 
ship to appear before me and declare, swear, to their invoices. I have been in- 
formed that a petition is about to be forwarded to you on account of my ac- 
tion. . . . 

" I am here now six months, and have watched the actions of all shippers. After 
watching, enquiring, etc., I have arrived at the disagreeable conclusion that two- 



thirds of the wine exported from here to tlie United States has been forwarded 
under tli<! protiction of false and fraudulent invoices. I believe, too, that the 
partie-, who luive >-eut those invoices would as soon s»vearto their tictitious value 
as dfciare to it. 

"I have examined each invoice of 1803 ; I have found that, without exaggera- 
tion, there was al)out three hundred thousand (300,000; dollars kept from our 
revenue by tliose invoices. 

" One of the secret agents of the Treasury Department was here a few weeks 
past. I communicated to' him my suspicions, sliowed him my book of invoices 
and the letters that the late vice consul wrote to one of the appraisers in Boston. 
He went to one of the largest shippers here to buy wine. The shipper, after 
some time, camlidly informt-d him that he cjuld not send wine to the United 
States unless under the protection of false invoices. He requested me to make no 
change, to allow this party to send his wines forward. I have done so up to the 
present, but now deem it necessary to have all the clauses of the aforesaid circu- 
lar complied with. He took with him all my invoices from January 1 to 14th of 
June. ' 

"There is a large quantity of wine from here on the way to the United States, 
invoiced at the very low figure. I do not believe any of them have the true 
value set forth, and I have informed the proper officers that I believe they are 
fraudulent. 

"I am, sir, your obedient servant, 

"R. F. FARRELL, 

" United iitates Consul. 
" Hon. \V. 11. Sew.\kd, 

^^ Secretary of State. Witshintjton.'" 
Henceforth, busing my action on the aforesaid Circular No. 59, my knowledge 
of the wine trade after a residence of six numths, and the information of the afore-* 
said Revenue Agent. I declined to sign any invoices that represented sherry wine 
at forty cents per g:\llon in Cadiz Bay. In the meantime, I informed the Depart- 
ments of State and Treasury and the Collectors of Customs at 2sew York and 
Boston of my action. The Cadiz shippers were indignant, and wrote to ^ladrid ; 
the Treasury Department seized the wines at New York and Boston, and entered 
a suit against them in the United Stutes Court. 

In the interval, the Cadiz shippers presented an exposition to the Spanish 
Secretary of State at Madrid, who in turn wrote to the Spanish Minister at Wash- 
ington to ))resent the facts to our Department of State. Soon as they came l)efore 
Mr. Seward, he referred them to the Treasury Department, and so informed the 
Spanish .Minister. {Vide Executive Document No. 133, 3'Jth Congress, 2d Session.) 
The shippers continued to importune me to sign their invoices, representing 
sherry at forty irntx per (jdUon, but I courteously and firmly declined assuring 
them, at the same time, tliat, if either the Departments of State or Treasury of 
the United States ordere<l me to do so, I would feel pleasure in doing so ; but until 
either, or both, communicated with me on the subject, I respectfully declined. 

The late Secretary of tiie Treasury not only approved my action, but author- 
ized me to expend a sum not exceeding s.jOO in procuring information relating to 
the undervaluation of wines, etc. 

At this time, the United States Government had seized, at Ne*\- York and 
Boston, one million two hundred and fifty thousand ( l.'ioO.OOO) gallons of siierry 
wine, invoiced at forty cents ])er gallon. The first suit was commenced against 
the Cadiz house of Lacave A: Echecopar. In presence of testimony as plain as that 
equals multi])lied by equals produce ecjuals. and tlie judge's charge to the jury iu 
favor of the (Jovernment. Xhti jnnj dinoi/refd. which is generally the case when the 
Govi-rnment is the plaintitV in such suits. But the disagreement of the jury was 
too outrageous to pass the ollicers of the Government with im]nmity. The Trea- 
sury Departtnent concluded to commence another suit, but, after considering the 
chances of fmding " twelve good and true men." who wiuild pay as much atten- 
tion to the claims of the Government as to the interests of a number of foreign 



merchants, who have no interest in our country or Government but to make all 
the money they can, honestly or dishonestly, at our expense, it thought best, to 
compromise the matter, and did so as follows : On the 1,250,000 gallons of wine, 
the duty was reliiiuidated upon tlie revaluation of forty-eight (48) cents a gallon, 
with a commission of two and one-half (2.V) per centum added. The additional 
duties were paid upon this revaluation, and" the claimants consented to an eniri/ of 
a reas maUe cause of seizure. The increased duty was : One million two hundred 
and fifty thousand' gallons of wine, at eight (8) ccmts per gallon, $100,000 ; two 
and one half (2i) per cent., $2,500; total, one iiundred and two thousand tive 
hundred dollars (!?102,o00). (Vide Boston Herald, September 10, 1868.) 

On the 11th February, 1867, the Honorable Samuel C. Pomeroy, Senator from 
Kansas, introduced a resolution, calling on the Secretary of State to report and 
transmit copies of any correspondence on file in the Department of State relating 
to '-the manner in whicii our Consul at Cadiz has transacted the business of his 
office, particularly relating to any statement or documents of the Spanish Govern- 
ment upon the question of the invoices of wines shipped to the United States,"' etc. 

My correspondence with the Department of State was presented to the Senate, 
February 23, 1867. It was "read, ordered to lie on the table, and be printed." 
You iiave a copy of the same. I beg to submit an extract from my despatch to 
the Department of State, No. 54, November 27, 1866 : 

" The mauner of legalizing invoices before my arrival was, certninly very con- 
venient for the shipper, but very preju< icial to the interests of the United States. 
The exporter put in the invoice whatj price suited him, signed in his counting- 
house, and sent it to the consulate by a boy for the consul's seal and signature. 
I have abolished tins practice ; the sliipper must appear before me, and, when I 
have any doubt of the value, swear to it, but at all times must sign it in my 
presence. For so doing I am considered disobliging, and my conduct stigmatized 
as 'rude and insulting,' but I have solely done my duty, and that in a polite 
and attentive manner. I cannot grant favors incompatible with my duty, and 
I certainly shall grant none that I know are prejudicial to the interests of the 
revenue. 

"I have kept the Honorable Secretary of the Treasury, and the collectors of 
customs at New York and Boston, advised of all my actions in relation to in- 
voices. 

" .My letters to the Honorable Secretary of the Treasury bear date as follo-vs : 
June Ki", August 14, August 2'J, October 4, October 18. November 2, November 9, 
November 17, 1866. I addressed one, also, to the Solicitor of the Treasuiy De- 
partment on the 29th of June, 186G. The following are the dates to tiie collectors 
of customs at New York and B)ston : To New York, June 29, July 20, Novem- 
ber 3, November 9, November 17 ; to Boston, September 10, 1866. 

" As I have declined to certify certain invoices, and the parties interested may 
address you upon the subject, I bag to inform you why I have done so. Last 
June -Mi-.^W. B. Farwell, secret revenue agent, visited this city. After an hour's 
conversation we agreed on a plan of finding out as much as possible in relation 
to lo A- invoiced sherry wine. Mr. F. visited the wine cellar of the largest and 
principal exporter from here to the United States, incognito, for the purpose of 
' buying wine for Canada.' After a short conference with one of the members 
of this firm, he frankly intbrmed him that it was impossible to send wine to the 
United States at the usual invoiced price, but that it was sent and invoiced low 
in order to escape the high duties. The duty on wine is : value not over fifty 
(50) cents per gallon, twenty (20) cents per gallon, and twenty-five (25) per cent. 
ad valorem ; over fifty (50) cents and not over one hundred (100), fifty (50) cents 
per gallon, and twenty-five (25) per cent, ad valorem; o er one dollar (:^l) per 
gallon, and twenty-five per cent, ad valorem. It is the interest of the shipper to 
pay only the lowest duty, to wit, ' twenty (20) cents per gallon, and twenty-five 
(25) per cent, ad valorem.' I assure you that ninety-nine out of every hundred 
casks of wine that leave this port are invoiced so as to come under the twi-nty 
(20) cents duty, and the shipper will swear that this is the true value, because 



6 

too many here consider such an oath as a mere form, and pay no more attention 
to it than it" it were the chorus of a ne<rro soner. 

" The wine thus invoiced is less tiiin fifty (50) cents per gallon. No one can buy 
the lowest chiss of slierry here for fifty (50) cents per gallon. But tiie shippers 
say, wlien I refer to tlie low price, that it is not sherry that they are sending — 
that it is common ' Moguier wine,' the refuse and trash of the wine district ; 
but they put it down in their invoices as sherry, and brand their casks as vessels 
containini; pure sherry wine, and I must, and do, consider it as sherry wine be- 
cause the invoice says that it is. and the shipper cannot put one thing in his in- 
voice, and come into tlie consulate and say that it is something else with im- 
punity, because, if I believed him, and acted on that belief. I could not sign the 
invoice unless I permitted him to put down one thing in his invoice, and after- 
wards to believe him when he stated that it was something else. The invoice 
is supposed to contain tlie quality, quantity, and value of the goods about to be 
exported. The shipper declares, or swears, it to be true in all respects, and signs 
it in my presence. It states that it represents so many gallons of sherry wine, 
I must believe the shipper; it is none of my business what the casks contain ; 
the appraisers will attend to their contents. I must go according to the invoice, 
and 1 cannot, and have not. allowed him to go behind his invoice, his declaration 
and signature, or accept his assertion that it is something else. Hence I have de- 
clined to certify certain invoices that I have had good reason to believe and do 
believe to be undervalued. 

Some time past these shippers adopted the skilful plan of defrauding the ship- 
owner of his freight, and the customs of duties. The plan was, and is : an Ameri- 
can butt is one hundred and twenty-six (126) gallons " legal measure,'" or one 
hundred and twenty-eight " full measure." Very little wine is exported in butts 
to the United States. Quarters are in general use. By the above measure a 
quarter cask would only contain thirty-one and a half (3H) gallons " legal mea- 
sure," or thirty-two (32) " full measure." Freight per tun on this ranges from 
$8 to ^10 per lun. Eight (8) quarters, or two (2) butts, make a tun. The ship- 
pers have had their casks made so as they would hold forty gallons: that would 
be one hundred and sixty ( 100) gallons per butt, or three hundred and twenty 
(320) gallons per tun. The full-measure tun. or eight (8) quarters, would only 
contain two hundred ami fifty-six gallons. Hence 320 — 2o(), G4 ; and 0-4 x 4, 
250 ; that is, the shipowner receives freiiiht for four tuns of wine, but he carries 
five. Each tun of the 'lull measure ' standard, namely, eight (8) quarters, each 
containing thirty-two (32) gallons, or for every twenty tuns of wine he carries he 
receives pay for only sixteen, plainly defrauded of one-fifth (|) of his freight. I 
have informed all American sliipmasters of this system. 

Their invoices were similar. They invoiced their casks as ctnitaining only 
thirty-two (32) gallons. At sixteen (IG) dollars per quarter this would be fifty i5()) 
cents per gallon ; but if they contain forty (40) irallons. only forty (40) cents; and I 
know no man can include all expenses and export wine from here at such a price, 
nor can any one here buy wine at such a price." 

On or about this time, the sherry seizures attracted considerable attention in 
Boston anil New York. The enti-rprising editor of the New York ILruhl de- 
spatched one of tlie most experienced of its many intelligent attuMs to Cadiz 
to investigate the matter. On Mr. Stephen H. Fiske's arrival (the correspondent), 
he called to see me. I advi.sed him to look around himself, make all necessary 
en(|uiries, but that I was willing to do all in my power to assist him in his inves- 
tigations. After a minute examination, ami several interviews with various per- 
sons, he wrote a.s follows, under date of the 27tli April, 1807, to that journal: 

"But, as it hai>pens, we have a little confiict of our own here in Cadiz. What 
is known in the United States as "the sherry war' still c<nitinues; but our 
Consul has gained several decisive victories, and the enemy seems inclined to 
surrender. The whole secret of this difficulty is very easily explained. For a 
long time ])ast several merchants here have been sendim; sherry wine to the 
United Stales under the low duty, valuing a quarter cask of thirty-one or two 



gallons, at only sixteen dollars. What the same sherry sells for in New York 
you well know. Previous Consuls have winked at this practice, or have connived 
at it ; but when Captain R. F. Farrell, our present Consul, came out to Cadiz, the 
merchants discovered that they had secured the wrong sort of a customer. Cap- 
tain Farrell earned his office by his services in the Union army. He raised his 
own company, fought in the Army of the West, served as Provost Marshal under 
General Grant, and was especially complimented by that great soldier. Add to 
this, that Captain Farrell is a lawyer and has been an editor, and you can imagine 
a gentleman incap:i1)le of corruption, too shrewd to be deceived, and bold enough 
to take the responsibility when he knew he was right. Upon his arrival at Cadiz, 
Captain Farrell found the mercl\ants sending sherry to the United States at a 
revenue valuation of $10 a quarter cask, when no sort of wine could l)e bought 
here at anything like tluit price, and when the same wine was sold at $50 or |G0 
at Jerez, the capital of sherrydom, and at Cadiz, the great sherry port. 

"This inconsistency having been pointed out to the merchants, they smilingly 
explained that the stuff sent to the United States was not sherry at all. ' It is 
slops,' they said, ' used to wash out the tubs, and for other dirty work about the 
stills.' This will be fine news for the sherry drinkers of New York. But Cap- 
tain Farrell presented to the merchants a new dilemma. He asked them how, if 
this stuff was not sherry, they could have the conscience to swear in their invoices 
that it was sherry, and he refused to countersign their invoices unless they either 
gave the wine its proper value, or entered it as ' slops.' It could not pass at six- 
teen dollars a quarter cask, even as imitation sherry ; for our revenue laws declare 
that imitations must pay the same tax as the genuine article. So soon as Captain 
Farrell took this bold stand, the merchants began to petition for his removal; 
but the Treasury Department having sent out a secret agent, to whom the mer- 
chants admitted that no sherry could be bought for sixteen dollars a quarter 
cask, and that this price was fixed to defraud the revenue, our Government 
decided to sustain Consul Farrell and carry on the war. 

" Thus far the United States revenue has not been the loser. Ultimately it must 
be greatly the gainer. The result was at first to diminish the exports, but what 
was lost in the quantity of gallons was compensated by the increased tax. The 
two or thrae firms which had monopolized the cheap sherry traffic are very 
badly crippled ; but the way is now clear for other and lionester houses to send 
good wines without being subjected to an unfair and dishonest competition. 
Under the old system a merchant would send wines of different values, swearing 
them all through at $10 a quarter cask. Then he had only to mark the diflerent 
casks with a leaf, a letter, or a figure, and inform his agent in New York what 
qualities of wines these signs indicated, and he could easily defraud the revenue 
by slipping through a number of casks of the highest priced wines. Captain Far- 
rell has taken the profits out of that game. 

"Another operation of his is equally neat. Our laws require that the market 
value of the wines shall be taken as the tariff value ; but the Cadiz merchants 
declared that this law could not apply to their $10 slierry, because it had no 
market value here, no one being williftg to Iniy such trash in Spain. Captain 
Farrell admitted that there might be some justice in this view of the value of 
their wines, but he suggested that the real market value was the price they 
brought in the market where they were sold — that is to say, in the United States. 
' Pay the duty upon the price you get in America,' said he, ' and I will be per- 
fectly satisfied.' This was emptying the unfortunate Spaniards out of the 
fiying-pan into the fire, and more petitions for the ConsuFs removal ensued. 

"But in the meanwhile Captain Farrell had discovered another swindle, from 
which American ship-owners had been the sufferers. In contracting for freight, 
the captains and merchants agreed upon so many dollars a tun. Now, eight 
quarter casks, holding thirty-two gallons each, make a tun ; but the Spaniards 
prepared spurious quarter casks, holding forty gallons each. The diflference in 
the size of the casks was not easily detected, and not until Captain Berry, of the 
Berkshire^ complained to the Consul that his ship held much less wine than usual, 



8 

was this fraiul exposed. It is but fair to say, and to say most emphatically, that 
the old-estal)li.«jhed houses, both here and at Jerez, are not concerned in this 
business, and give tlie Consul and the revenue no trouble whatever : but there 
are a number of speculators, grown rich upon their ill-gotten gains, who have no 
regard for their oaths, and who take a pride in swindling the revenues of their 
own and of all other countries. They hate our Consul because he can neither be 
bribed nor intimidated : the respectable wine merchants respect him for the same 
rciisons. The adulterations of wines, which are <juite distinct from any revenue 
matters, do not come within tiie scope of your Cadiz correspondent, but must be 
seen in all their details at Jerez. 

"The Russian Consul at Cadiz receives *7,000 a year, the French Consul |i5,000, 
the English .^4,800, and all of them are allowed plenty of clerk hire and office 
rent. The American Consul, out of a salary of ^1,500, has to pay his clerk and 
buy his office furniture. No wonder that under these circumstances previous 
Consuls should have winked at frauds and invoiced sherry at half the price of 
the lowest wines here. When a government underpays its employees, it encourages 
them to be dishonest. Our Consul ought to receive live thousand dollars a year 
at least, and if the Government had been paying that salary it would have been 
better for the treasury. We have saved thirty-tive hundred dollars a year in the 
salary ; but since 18(Jo the Government has lost over one hundred thousand dollars a 
year by the sherry frauds connected with the sixteendollar invoices. It is more 
profitable to be just or even generous, and I hope that a gentleman like Captain 
Farrell, who does his duty honestly, witiiout fear or favor, will not be forced to 
resign his position to inferior hands because his salary is not sufficient to support 
any man in Cadiz respectably." 

Such, dear sir, is a brief statement of ray conduct in the matter of declining 
to certify what I supposed to be, and what the Treasury Department has dis- 
covered to be, and what the shippers have admitted to hs,/alisc invoices. 

THE CADIZ INSURRECTION. 

I assure you that I refer to the part I took in that sanguinary struggle with 
diffidence; Ijut as the press of England, Spain, Switzerland, and the United 
States have complimented my action, and the late venerable Secretary of State 
not only approved of what I did, but thanked me for tiie same [his letter is an- 
nexed], I beg to present you with a short sketch of what took place: 

At 2 o'clock P.M., Saturday, December 5, 1868, the insurrection commenced, 
and raged without an hour's intermission, day or night, until early on Tuesday 
niorning, December 8, when, in company of the Norwegian Consul, I succeeded 
in obtaining a cessation of hostilities, in the name of humanity, of the terrified 
women and children, between the contending parties for forty-eight iiours, which, 
fortunately, was extended for a week, and ultimately to a compromise. While 
the city was in possessrlnn of tin- militia, the gates closed, and armed men of 
every condition in life roaming througli tlie city, I was appealed to by a number 
of Uriti>h subjects to assist them to escaf e from a scene of so much bloodshed 
and danger. Suffice to say, I promised to assist tlu-m, and fulfilled it, as the fol- 
lowing correspondence shows : 



t( ' 



B. S. S., Lt).\i)ON, Bay of Cadiz, December 8, 1SG8. 
"To R. F. F.\RUKi.L, Esq., Consul of the United States of America, Cadiz : 

"DkauSii!; We, the undersigned, arc safe on board the ship above-named, 
experiencing tiie kind lios|)itality of Captain Hall. That we got out of the walls 
of Cadiz, and all here, we feel to be entirely due to the courage and firmness with 
which you maintained your right to pass us through the gates in spite of the 
resolute and fieree n-sistanceof tiie revolutionists. Every one of usiiave expressed 
regret that in the luirry of our departure we missed you at the gate, and were 
unahh; to oiler yon by word of mouth tlie thanks which we certainly owe you. 
Failing our ability to do this, we have thought it best to testify, as we beg to da 



9 

by means of this joint letter, our sense of your great kindness and of our own 
gratitude. We are, dear sir, vour obedient and faitliful servants, Philip KrKGS- 
FORD, M.A., and Clerk in Holy Orders of the Church of England ; Mauy Cres- 

WELL, ROSARIO GOHDON, JOSEPn GoilDON, C. J. CuESWELL, PlIILIP NOHMAN, 

Ejiilius a. De Cosson." 

" U. S. Consulate, Cadiz, December 14, 18G8. 
*' Philip Kinosford, Escj., M.A. : 

"Dear Sir: I seize the first available moment to acknowledge the receipt of 
your kind and complimentary letter of the 8th inst. I beg you to assure your 
friends that in aiding them to pass out of Cadiz I only did my duty as an Ameri- 
can, as a public otiicer and gentleman, and am ready at all times to do the same. 
" I am, dear sir, with much respect, your obedient servant, 

" R. F. Fakkell, U. S. Consul." 

The following extract from the report of Capt. H. C. Blake, U.S.N., is sub- 
mitted : 

U. S. S. SwATARA (3d Rate), 

Cadiz, Spain, Dec. 13, 1868. 

Sir : . . . I deemed the presence of this vessel no longer necessary at 
Gibraltar, and immediately left for this place, where I arrived on the morning of 
the 12th inst. 

I found this city in a state of siege — the streets barricaded: non-combatants, 
who were able, leaving the city; and the Governor, and the forces under his 
command, contined in the Custom-house, over which a white flag was flying. 
The Spanish vessels of war were anchored in a line, ready to fire upon the city. 
All the American travellers had left the place. Those with American protection- 
were placed on board the vessels in the bay. The American Consul declined 
leaving his Consulate until the fleet should open upon the city. I immediately 
communicated with him, offering the use of boats to bring oft' himself and Ameri- 
can citizens. The Consul visited the ship, and reported the substance of the 
above information in relation to the aft'airs here. 

As far as I am able to learn, it appears that the collision between the citizens 
and troops was brought by an order given by the Governor for the former to sur- 
render their arms in thre^ hours. Some trouble in relatitm to this order having 
taken place at the port of St. Mary, a detachment of troops was marched to the 
mole to embark for that place, when they were fired upon by the people. The 
fighting then became general throughout the city, and continued for some two 
or three days, tlie populace succeeding in driving the troops to the Custom-house. 
At this point Mr. Farrell succeeded in bringing about an armistice between the 
parties. The loss of life on both sides was considerable. 

Very respectfully your obedient servant, 

(Signed) HOMER C. BLAKE, 

Commander Commanding. 

Commodore A. M. Pennock, Commanding European Squadron. 

From several parts of Spain I received letters thanking me for my conduct and 
efibrts in favor of peace during the struggle and after it. Here is one of the 
most important : 

DireccioB general de las Sociedades Obreras de Barcelona, 

Al sefior consul de los Estados Uuidos, Cadiz. 

El Congreso obrero compuesto de las Sociedades trabajadoras de Catalofia, 
reunido el dia 13 de los corrientes en esta ciudad, despues de haber declarado 
liberrima y unanimemente que la forma de gobierno que convieue mas en Espafia 



10 

«s la rcpublica democratica federal, lia resuelto enviarle un voto de gracias por 
8US bueno:; oficios en favor de la p;iz en los aconteciinientos que ban tenido lugar 
en esa beroica ciudad de Cadiz. 

Acuerdo que tiene la satisfaccion de remitirle la Direccion central de las So- 
ciedados obreras de Barcelona. 

Salud y fraternidad. 

Barcelona 10 de dicienibre de 1868.— El ciudadano presidente interino, Juan 
Forgas. — El ciudadano secretario interino, Antonio Calouie. 

Consulado de los Estados Unidos. CiUliz. diciembre 23, 1868. 
A la Direccion central de obreros de Barcelona. 

Muy seftorcs mios : Tengo el lionor de acusarle el recibo de su conumicacion 
de 16 del corriente, ddndome un voto de gracias en nombre del Congreso de obre- 
ros de esa ciudad de Barcelona, por mis oticios en favor de la paz durante los des- 
graciados sucesos ocurridos I'lltiinamcnte en esta ciudad. 

Tengo el honor de inforinarle que todos y cada uno de los miembros del 
Cuerpo consular en esta ciudad fueron tan celosos en sus oticios en favor de la 
restauracion de la paz como el firniante y son igualniente acreedores a la felicita- 
cion de ese Congreso. 

Doy gracias I'l los trabajadores de Barcelona por sus cumplimientos, e inmedia- 
tamente remitire copia de su comunicacion al honorable secretario de Estado de 
los Estados Unidos. 

Soy de ustedes con mucho respeto S. S. Q. B. S. M.— R. F. Farrell, consul de 
los Estados Unidos. 

[Translation.] 

"Cextr.vl Directory of the Mechanics akd Workingmek's 
Congress OF Catalonia, Barcelona, December 16, 1868. 

*' To R. F. Farrell, U. S. Consul at Cadiz. 

"Sir : The Workingmen's Congress, composed of the societies of mechanics 
and laboring men of the Province of Catalonia, assembled on the 1:5th day of De- 
cember in this city, after having freely and unanimously declared that the form 
ot government most suitaljle to Spain is the Democratic Federal Republic, un- 
animously resolved that the best tlianks of the said Congress were due and are 
herebv tendered to you for your noble efforts in favor of peace during the late 
events in the heroic city of Cadiz. The Central Directory of the aforesaid Con- 
gress, have great pleasure and satisfaction in remitting the same to you. 

" Ilealtli and fraternity, Juan Faugas, President pro tern. 

" Antonio Calome, Secretary." 

[Translation.] 
"U. S. Consulate, Cadiz, December 23, 1868. 
"To Messrs. John Fargas, President pro tern, and Antonio Calome, Secretary 
pro tern., of the "Workingmen's Congress at Barcehma : 
"Gentle.men: I have the honor to acknowledge the receipt of your com- 
munication of the 16th inst., conveying to me a vote of thanks in the name of 
the WorkiuLrinen's Congress assembled at Barcelona, for my efforts in favor of 
peace during the unliappy days which lately visited this city. I beg to inform 
you that each and every member of the Consular body in this city was as zealous 
in his efforts to restore jieace as the undersigned, and arc ctjually entitled to your 
acknowledgments. I thank tiie meclianies and workingmen of Catalonia and 
Barcelona for their comiiliment. and sliall immediately transmit a copy of the 
same to the Honorable Secretary of State of tlie United States. 
"I am, "entlemcn, with great respect, vour obedient servant, 

" R. F. Farrell, U. S. Consul." 



11 

Copies of all the letters received, and an account of what took place in and 
around Cadiz from December 5, 1868, when hostilities commenced, to the 15th 
of December, 18G8, were sent to the Department of State. The venerable 
head of that department sent me, in reply, the following letter : 

No. 85.] Department op State, Washington, Jan. 12, 1869. 

R. F. Farkeix, Esq., U.S. Consul, Cadiz : 
Sir : Your despatch of the 15th December, No. 110, has been received. It con- 
tains a very full and interesting account of the recent insurrectionary proceedings 
at Cadiz. 

You will accept my tliauks for tlie manifest attention and care with which that 
narration lias been made. It gives me much satisfaction, moreover, to approve 
and commend the judicious, dignified, and efficient manner in which you exe- 
cuted in that transaction the important part which so unexpectedly devolved 
upon you as the Consul of a friendly nation. 

I am, sir your obedient servant, 

William II. Sew^\rd. 

Minister Hale wrote a very liattering letter to me. Here is an extract : " I was 
highly gratified to learn the useful and active part which you took, etc. The 
inhabitants of Cadiz, I learn from various sources, highly appreciate your con- 
duct. The latter, I suppose, look upon you in a somewhat diftereut light from 
what they did some time since, when your fidelity to your Government and your 
duty made you so obnoxious to those who were oiTended by your honest and 
fearless discharge of your duty in respect to their fraudulent attempts by which 
the Treasury of the United States would have been defrauded." 

The London Dd'dy News, December 12, 1868, stated : " The peaceful termination 
of the insurrection at Cadiz is entirely attributable to the good offices of Mr. 
R. F. Farreli, the American Consul in that city." 

Every daily journal in the United States on the morning of December 13, 1868, 
copied the above, and many referred to it in a complimentary manner. 

The New York HernU, December 18, 1868, says (editorially) : " The part which 
was played in Cadiz during the recent struggle in that city by Captain Farreli, 
our Consul there, redounds to his honor and the honor of the United 
States." 

The ]\Iadrid correspondent of the Journal de Geneve (December 24, 1 868), 
said : 

L'acharnenient entre la troupe et les citoyens, dds le debut de la lutte, a etc tel 
que la plupart des maisons ont et«3 depouillees de leurs meubles et de Icurs mar- 
chandises, qui ont servi dans les rues a clever des barricades. C'est ainsi qu'un 

honorable commergant suisse. M. B , du canton de Vaud, s'est vn enlever tout 

ce qu'il posst'dait, sans(ju"il lui fut laisse un lit ou une chaise; des balles de 
papier qu'il avait en magasin fun-nt egalement jetces sur la voie publique, et 
empilees comme moyen de defense. Malgre ces exces, aucun vol n*a ete commis, 
et chacun, aprds la reddition de la place, a pu reprendre les effets qui lui man- 
quaient : mais je vous laisse a penser dans quel etat ils se trouvaient. Ce qu'il y 
a eu d'etrange dans ce coml)at de maison ii niaison, c'cst qu'au milieu des de- 
charges de rartillerie, les cloches des eglises sounaient a toute volee, et ce tapage, 
joint aux cris des combattants et aux plaintes des blesses, devait produire un eifet 
lugubre qui restera longtemps grave dans le souvenir de ceux i[ui ont assiste ;\ ces 
terribles scenes. Pendant la treve qui fut accordee a la demande des consuls 
etrangers, et plus particuliercment du consul des Etats-Unis, lequel s'est admi- 
rablement conduit dans cette penible circonstance (cette treve, vous le savez, avait, 
pour but de permettre la sepulture des morts (pii, depuis quarante-huit heures 
gisaient sur les places et dans les rues), on voyait des milliers de personnes, surtout 
les femmes et les enfants, courir eperdues dans la direction du port iiour y cher- 



12 

cher (ks einburcations qui pussent les transporter sur quelqucs points habites de 
la cote voisine. 

On I'vakK- a oo.OOO les personnes qui ont abandonne la ville ; les pertes sent 
(•nonues. et Cadix pent etre cousiderce comme ruinee pour longtemps. 

It is unnecessary for me to translate the foregoinfj. I present it to show you 
how strangers viewed ray conduct when I did i/nj duti/, and as corroborative of 
my a-sertion referring to the press of Switzerland. 

Mr. Oscar G. Sawyer, the correspondent of tlie Xew Yori^ Herald at Cadiz, 
during and after the insurrection, wrote to that journal under date of December 
14, 1868 [vide New York Ilernld, January 15, 1869] : 

'•The Qwnho&t Smitara, Commander Blake, arrived from Gibraltar on Saturday 
to attend to American interests. Fortunately all had gone well, th tnks to the 
intluenec and energy of Mr. Farrell, our Consul, who is really the person entitled 
to the honor of settling the trouble and savin<r a grtat many lives. There were 
quite a number of American and English tourists here, whom he cared for and 
passed out to ship? in tlie harbor, where they found a place of safety. The Eng- 
lish pirties united in signing a very handsome acknowledgment of his valuable 
and timely services in placing them in a safe retreat. On all sides the Consul has 
won golden opinions. The general commanding and the chiefs of the revolution 
are e(]Ually warm in their acknowledgments of his invaluable services in bringing 
to a close the bloody combat. lie has performed his duty well, and is deserving 
of all praise." 

During the insurrection the following well-known citizens were at Cadiz with 
their families. They are acquainted with all the facts staled connected witli the 
same: Col. Amasa Stone, Jr., Cleveland; Col. I. 11. Reed. New York: II. C. 
Kiiigsley, Esq., New Haven, Conn.; E. W. Fiske, Esq., Brooklyn. 

At or about the time the shippers of low-priced wine were informed that Mr. 
Fish had removed me, .Mr. John J. Ryan, the Paris correspondent of the X. Y. 
Times, visited Cadiz. Under date of' April 3, 1869 [vide N. Y. Times, April 28, 
1869 J, he wrote: 

'•On our arrival in Cadiz our party called upon the American Consul, Captain 
R. F. Farrell. to get some information regarding the movements of the Fnnd-lin, 
which we had reason to believe would have reached the port before our arrival. 
He could tell us nothing more than that the otlicers of the Siratara were in hourly 
expectation of receiving a telegram announcing her departure from Lisbon, and 
that he had himself given orders to have a pilot on the lookout for her. 

'• We found the Consul somewhat mystified by a paragraph which liad a])peared 
in the (Jorrespondencid of Madrid, a cou|)le of evenings previously, announcing his 
removal from his position. As the name of his successor was not mentioned, and 
he had received no intimation of his displacement from any other quarter, he had 
come to tlie conclusion, and we agreed with him in it, that the statement was an 
unauihori/.ed one, and was, in all jirobability, a hoax. It was iiardly to be sup- 
posed, after the services which he had renilered the Government in tlie matter of 
the wine frauds, and the credit wliicli he won for himself and the country during 
the recent insurrection, that he would Ite thus unceremoniously dismissed. Should 
the statement turn out to be correct, it will he very unfortunate for the interests 
of tlie Government, and will occasion a great deal of excitement in Cadiz, where 
the spirited and Judicious conduct of tills officer during the critical circumstances 
in wliieh the city was lately placed has won him the esteem and regard of all 
classes of its population." 

The X. Y. n,r<t!d, reviewing the dii)lomatic and consular service, ^lav 17, 
1869, says: 

" We possess some men. however, who forget not tlieir country, wlio forget not 
that they are American gentlemen, supposed to represent one of the grandest na- 



tions on earth, whose characters are spotless, and of these of the rank of Ambassa- 
dor are : — Alarsh, at Fk^rence ; Tuckennan, at Athens ; Bancroft, at Berlin ; Dix, 
at Paris; and Bartlett. at Stockholm. We have also very many first-rate men as 
Consuls, of whom we may mention Farrell, at Cadiz; Conway, at Marseilles; 
Good fellow. Consul-General, at Constantino|)le ; Johnson, at Beyrout ; Webb, at 
Zanzibar; the Consul-General at Calcutta; our Consul at Bombay; Seward, at 
Shanghai, and several otliers. But tiien we have Consuls and Consuls-General 
who are nothing more than low drunkards, brutes who disgrace the very name of 
man; and then we have men who are in other ways utterly unfit to hold office, 
and General Grant should exercise the very greatest care that such men as are 
totally incapacitated from performing tlieir duties, mentally as well as morally, 
should no longer be a reproach to the nation of which he is tlie elected head." 

On my return to the United States, several prominent persons asked me why I 
was removed, among the nundjer my dear friend, the Most Reverend Archbisiiop 
Purcell. I informed them I knew of no cause, but tiiat I intended to find out if 
there was any. Some said it was strange that General Grant should remove a 
man who did his duty as I did it. not to mention the fict that I served in the 
Army of the Tennessee, the cradle of his fame, and performed some service which 
he (Gen. Grant) remembers, as the following letter shows : 

Willard's Hotel, Washington, D. C, January 20, 1871. 
My Deak Captain : If I can serve you in any way, I should be glad to do so. 
I always feel it a duty as well as a pleasure to serve my old comrades of the war, 
especially those who, like yourself, did efficient service in our grand old Army of 
the Tennessee. I shall never f<n-get the special service you did at Jackson, and I 
have no doubt General Grant remembers you well. If you can state any special 
service I can do for you, command me. 

Yours truly, W. S. IIILLYEK, 

Ex-ProA"Ost Marshal General, Army of the Tennessee. 

Captain R. F. Farrell, Owen House, Washington. 

You presented me to the President after you heard my statement, corroborated 
by my printed correspondence with the Department of State, which you liave 
read. The President informed us that he w:ould refer the matter, and so he did, 
to Mr. Fish. The latter informed me, when I called to see him, that the Spanish 
minister, two years he/ore he (Mr. Fish) was in office, preferred charges against me 
for interfering with the plans of dishonest merchants at Cadiz. Mr. Seward, I 
supposed, examined the charges ; at least Secretary McCulloch endorsed my 
action, and sent me ."^oOO to find out all appertaining to the wine trade. But, 
miralile dlctu ! I was removed on an ex-parte statement of a foreign minister made 
two and one-half years before the election of General Grant to the presidency ! 

My curiosity was excited to have a peej) at the charge or charges of the ;Min- 
ister Plenipotentiary, etc., of Spain, and I addressed a communication to Mr. Fish 
on the matter. He'furnished me with a copy of the charge, and, as a warning to 
future Consuls, I present it in extenso : 

[Translation,] 

Washington, 27th February, 1868. 

Legation of Spain at Washington: 

The undersigned Minister Plenipotentiary of Iler Catholic Majesty has the 
honor to address himself to the Hon. Secretary of State of the United States, to 
place before him what follows. It appears at the Department that the Consul of 
the United States at Cadiz, Mr. Farrell, has for long time refused to sign the in- 
voices of sherry wine intended for this republic, alleging for cause that the value 
of the wine, as declared by the exporters, is inferior to what the article is really 



14 

worth, and this tends to diminish the payment of duties on importation, whicli in 
the United States are collected ad caloreia. 

The explanations which the exporters have thus far given to convince the 
Consul of liis error by demonstrating by detailed analysis of the manufacture of 
the wines that tluir value is exactly stated, have been useless. Meantime, and by 
effect of the obstinate negative of the Consul, considerable losses have been caused, 
and continue to be caused, not only to tiie individual interests of exporting mer- 
chants, but also to the general and common interests of Spain and of the United 
States, between which the trade in wines has been in effect paralyzed. This 
being assumed, and to avoid the prolongation of so lamentable a condition of 
things, the undersigned thinks it would be well to introduce some modification 
of the tarilf of duties which ])revails in the United States. 

The ltd vkI'Tciii duty which is at present collected on wines imported, and 
which in practice is producing difliculty and stagnation, might perhaps be sub- 
stituted by another impost equally beneficent to the interests of the treasury, and 
which would not be subjected, iti its application, to divergences such as those 
occurring in Cadiz. 

In this category the specific duty is to be found, which, based upon an equi- 
table value, but not without taking into account the quality and value of the 
article, would give commercial and economic results which are looked for thr(»ugh 
the <td valoreui duty. But even in maintaining the existing system there might, 
perliaps, be an advantageous arrangement introduced by a regulation that wines, 
and other articles of analogous character, should be appraised at the places ta 
wli' ^n they are destineil : and in cases of difierence about tiieir real value, the 
custom house should become entitled to them by paying to their consignees the 
value determined on, with an addition of Jive or tenjyer cent, additional if it should 
be thought tiie value stated was below the real and true value. 

This is practised with good result in many countries, and, in respect of certaiit 
productions and in tiie case in hand, would probably give favorable results, by 
the avoidance of frauds on the public revenue and by counteracting the ill faith 
and arbitrarity of merchants and employees. Tlie undersigned, in permitting hiui- 
self to present to the Hon. Secretary of State the preceiling suggestions, has no 
object but to contribute on his part to remedy the evils which are experienced 
from the fetters put on the exportation of sherry wines, and would be glad, there- 
fore, if such suggestions should prove acceptable, tiiat they should be recom- 
mended to the Treasury Department, in order that it might be taken under con- 
sideration by the competent authorities. 

After what has been said upon the question as to the effect on material 
interests, the undersigned, in conformity with orders received from his govern- 
ment, should call tiie attention of the lion. Secretary of State to the language, 
otlensive to a respectable class of persons, which Mr. Farrell has employed in his 
orticial communications. This functionary, in dispatches addressed to the Depart- 
ment of State, and particularly in those distinguislud by the numbers 3S, of June 
2'Jth, is()(i, and No. .")4, of "JTlh November of tiie same year, which iloeumeuts 
were published on being sent by the President of the United States to Congress, 
has abused and calumniated in the gravest language all the merchants of Cadiz, 
and as it is not possil)le for them, in view of tiie special circumstances of the case, 
to employ the legal and ordinary modes of vindicating themselves and obtaining 
proper reparation from Mr. Farrell, they have taken recourse to the Government 
of Her Majesty, soliciting iier to protect the wounded honor of her subjects. In 
con.se(|Uence. the undersigned tinds it his duty to address himself to the Hon. 
Secretary of State, calling iiis consideration to tiie fact to which he refers, being 
unable to do less than to protest against the calumnious accusations made by Mr. 
Farrell in the letters aforesaid. The undersigned hopes from the iiigh regard for 
justice of tlie Hon. Secretary of State, that, taking account of the fact and the 
special position of that functionary, he will act in both respects as justice, reason,, 
and fitness mav couHsel. 



15 

The undersigned avails of the occasion to reiterate to the Hon. Secretary of 
State the assurance of his highest consideration. 

FACUNDO G05sl. 
To the Honorable Secretary of the United States. 

It was with no ordinary feelings of surprise that I cnrefullv read the preced- 
ing document. I re-read it. I liave been unable to find any cause for my 
removal, as stated by Mr. Fish, except where the Spanish minister finds fjiult 
with my execution of tlie laws of the United States and ouj' system of collecting 
duties on imports. ° 

I admit that my language was plain, as it ought to be, wlien I informed the 
Department of State of the character, antecedents, etc., of the Spanish merchants 
engaged in the trattic of invoicing wine at less than one-half its value. 

The merchants of Cadiz — men who have been born in the wine-trade, if I 
may say so— know that I never referred to them. It was only a clique of some 
dozen or so who are as hostile towards custom-houses as if they were the direful 
springs of ail the woes of humanity. The Corypheus of the gang was a Gibral- 
tar Jew, who bade farewell to the Pentateuch when he left the Bay of Algeciras, 
and humbly recanted the shortcon)ings of Judaism for the graces of Catholicity' 
when lie found that to be a Cadiz merchant it was necessary to believe in the 
"Sermon on the Mount " and the "Apostles' Creed." The' clique flourished 
during our war, but when I took charge of the consulate I put a stop to their 
commerce. I admit that they have had their revenge by having me removed by 
a Secretary of State who knows nothing of the merits of the case, and who 
would not listen to any explanation, even when the matter was referred to him, 
on tico dijferent occasions^ hy President Grant. 

They could not succeed while Mr. Seward was Secretary of State, because 
that sagacious gentleman invariably supported his subordinates when they did 
their duty, and impartially investigated all charges preferred by ministers or 
smugglers against the consular ofticers of the United States. 

Dear Sir, I am not seeking for reinstatment. I would not accept the position 
to-morrow. But I believe it to be my duty to place on record a sample of the 
reward in store for consular officers of the United States who are manly enough 
to obey the orders of their superiors, honest enough to prevent foreigners froin 
robbing us, especially when the country was taxing her best energies to assist 
the disconsolate relatives of those who died that this nation might live, chival- 
rous enough to protect the helpless even at the risk of life, and ready at all times, 
as I have been, at home and abroad, to uphold the dignity of the nation, and, if 
possible, enhance the honor of our flag. And I think, too, that if my statements 
are true, and they are (the records of the Departments of State and Treasury 
corroborate them), an indignity has been put upon me which has been 
highly gratifying to the Corypheus and cliijue aforesaid, who admitted at Boston 
and New York to ' a reasonable cause ok seizuue," and -who were compelled 
to pay into the United States Treasury the comfortable sum of $102,500, and 
which the President of the United States is bound injustice to remove, since his 
representative at the State Department has refused to go behind the tx-jiarte 
statement, which is nothing in itself but a criticism of our revenue laws, of the 
Spanish minister addressed to his, Mr. Fish's, predices-sor in lb(J8. 
S^ The " complaint " of the Spanisii minister is ridiculous. I beg to call vour 
attention to its principal points: 

I. If I refused " to sign the invoices of sherry wine," r^s I did, for a long time, 
why did the Departments of State and Treasury neglect to inform me that I was 
doing wrong, if I was doing so, after the remonstrance of Senor Tassara. the 
predecessor of ^Minister Gofii, which was presented to the Department of State 
February 5, 1867 ? 

..II. I was sent to Cadiz to execute the orders of the I)e|)artments of State and 
Treasury. I have done so. The Secretary of the latter depariment sent me $500 
to assist me in puttinfj $102,500 into the strong box of which he held the key. 



III. Tlie Spanish ministers statement that I "calumniated in the gravest 
lantruaf,'e all tlie merchants of Cadiz.'' is gratuitous. Tliere are (werej only a 
small number of the many wine merchants of Cadiz and vicinity engaged in the 
so-called low wine trade. My letters to the Department of State referred to 
them, and to them alone, as every one in Cadiz knows (knewj. Calumny, as 
defined by Webster, means '■' afaUe nan sat ion, mrtlirhusli/ mn^k,'' etc. I made no 
accusation against any person or persons, but simply informed the I)«;partment 
of State that the character of the exporters of so-called low sherry wine was not 
good for truth and veracity. Tfici/ hnce admitted that it iras (is) not, by publicly 
stating before the representative of the United States Government to "a 
reasonable anise of seizure.'''' If there was " a reasonable cause of seizure," I did 
my duty when I communicated with the aforesaid departments, and did not cal- 
umniate any merciiant or merchants; if tiiere was no reasonable "cause of 
seizure.'' the exporters, or their agents, have stated an uutrutii when paying 
the extra duty of eight cents per gallon, and two and one-half per cent, on the 
same. 

The foreitjn clique have triumphed ; the obedient public servant, who dared 
do his dutyV has been denied a hearing by the Secretary of State of his old 
General, who knew him in the field, through his . .iff officers, to be an efficient 
officer — an American soldier. 

The exporters of so-called low sherry wine from Cadiz have been mollified 
over their hm of $102,500 in a measure by the removal of a consular officer whom 
they tried to intimidate and cajole, but failed in both. Neither their best friend, 
Mr.* Hamilton Fish, nor any of their agents in the United States, are able, how- 
ever, to obliterate the endorsement of the great Secretary of Stati-. 3[r. Seward, 
whose fame is tiie pride of his friends and the glory of his country, for services 
that all honest men esteem and incorruptible administrations reward instead of 
punishing. 

I am, dear sir, your obedient servant, 

R. F. FARRELL, 
Ex-United States Consul at Cadiz, Spain. 



LK S '12 



